Ernst & Young (EY) has launched a brand new utility that helps U.S. cryptocurrency merchants calculate and file their taxes with ease.
The EY Cryptoprep app, a Software program as a Service (SaaS) web-based crypto tax engine, helps customers calculate crypto-related good points and losses which have to be reported on Kind 8949, a kind used to report gross sales and exchanges of capital belongings.
In accordance to a June 18 assertion from EY, one of many 4 largest accounting firms on this planet, the engine provides step-by-step steering by the crypto tax course of. Customers of the appliance, which helps main digital belongings, can join it to numerous exchanges to gather knowledge about all their transactions.
EY Cryptoprep will then combination and reconcile the information earlier than making use of the related tax guidelines to produce an account of crypto capital good points or losses. Afterward, a accomplished Kind 8949 for all relevant years is issued. The app additionally permits customers to submit amended returns for previous tax liabilities, not solely the present 12 months.
Ernst & Young vice-chairperson for tax providers Marna Ricker claimed the agency is responding to growing demand.
“Our purchasers more and more maintain and commerce crypto belongings, creating the necessity for an modern answer to deal with the evolving complexity round submitting crypto taxes. The EY Foundry, our inside company venturing unit, created EY Cryptoprep to modernize the crypto tax accounting course of,” mentioned Ricker.
This isn’t the primary providing from EY concentrating on digital monetary belongings. The agency unveiled an auditing software program for cryptocurrencies known as EY Blockchain in April 2018. EY Crypto-Asset Accounting and Tax, a device that facilitates accounting and tax calculations for crypto transactions, focused at each institutional and retail traders, was launched final 12 months.
“EY Cryptoprep expands our modern portfolio of profitable new digital companies,” mentioned Chirag Patel, Ernst & Young foundry chief, within the assertion.
The Inside Income Service deadline for tax returns is July 15, 2020.
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Picture Credit: Shutterstock, Pixabay, Wiki Commons, EY
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